India’s industrial and warehousing sector saw strong growth in H1 2025, with 20 million sq. ft. leased—a 33% YoY increase. Delhi NCR and Chennai led the market, contributing nearly half of the total leasing, driven by high activity in Farukh Nagar and Kulana. Q2 alone recorded 11 million sq. ft., the highest quarterly absorption in recent years.

3PL firms accounted for 32% of demand, followed by engineering, e-commerce, and auto sectors. Grade A spaces dominated leasing due to rising preference for quality infrastructure.

On the supply side, 19 million sq. ft. of new stock was added, up 11% YoY. With steady vacancy at 13.5% and rising rents, total new supply is projected to reach 35–40 million sq. ft by year-end.